International Trade in Services.pdf - DSpace at Khazar University

84 International Trade in Services
Table 3.5. Frequently Encountered Restrictions on Legal Practice by Foreigners
(continued)
Type of measure Generic examples of restrictions Case example of Tunisia
Fee setting
Other restrictions
• Minimum and maximum fees for all or
some groups and activities in the
profession
• Restrictions on the use of firm’s
international names
• Restrictions on repatriation of benefits
(exchange and capital control)
• Double taxation
Fee setting for some
activities, for example,
notaries
None
Source: Author compilation.
Note: The table is not exhaustive. It gives an idea of the potential regulatory obstacles to trade. The
table also does not address the adequacy of domestic regulations. Some are fully justified to ensure
the quality of the service, and some might be more restrictive than necessary to achieve this end.
The review can help determine the usefulness and impact of the regulatory
framework and identify the following:
• the objectives of specific rules
• when the rule was enacted
• when the rule was last invoked
• when the rule was last reviewed
• if the rule is consistent with current government policy
• if the objectives of the rules are being achieved
If the review suggests that some regulations should be reviewed, two characteristics
of legal services make it likely that a liberalization and market opening will be
smoother than is the case in many other sectors (Geloso Grosso 2004). First, most
trade in legal services occurs among firms and not between firms and consumers;
thus, there are few specific risks of adverse impacts on consumers. Second, the
impact of the liberalization of domestic service suppliers is also likely to be less
pronounced because they retain a competitive advantage in the practice of
domestic law.
The character of legal services continues to evolve, and, even in sophisticated
economies, policy makers regularly have to review, adapt, and improve rules. For
example, in the United Kingdom, the 2007 Legal Services Act introduced major
regulatory changes that are intended to bring greater competition and oversight
into the practice of law. Notably, it is enabling multidisciplinary practices, allowing
foreign investors to hold equity positions in partnerships, creating an external